It is a case of ______ if demand of the commodity changes with the change in price.
Income elasticity
Price elasticity
Cross elasticity
All the above
In case of demand, a slight change in the price will make greater changes in demand
Perfectly elastic
Perfectly inelastic
Elastic
Inelastic
If demand is price elastic, then:
A rise in price will raise total revenue
A fall in price will raise total revenue
A fall in price will lower the quantity demanded.
A rise in price won't have any effect on total revenues.
For which product is the income elasticity of demand most likely to be negative?
Computer software
Used clothing
Basket balls
Bread
If the price elasticity of demand for a good is. 75, the demand for the good can be described as:
Normal
Inferior
If a good is a luxury, its income elasticity of demand is.
Positive and less than 1
Negative but greater than 1
Positive and greater than 1
Zero
Revenues from the sale of a good will decrease if
Income increases and the good is normal
The price rises and demand is elastic
The price rises and demand is inelastic
Income falls and the good is interior
The price elasticity of demand is defined as the absolute value of the ratio of
Price over quantity demanded.
Change in price over change in quantity demanded.
Percentage change in price over the percentage change in quantity demanded.
Percentage change in quantity demanded over the percentage change in price.
Change in the demand of a commodity due to change in the price of the substitute is an example of
A vertical demand curve has
Unit elasticity
Infinite elasticity
Zero elasticity
Varying elasticity
